Russia's X5 Retail: New stores helped boost sales

X5 Retail Group NV, Russia s largest food retailer, said sales rose 20 percent in the first quarter as it added new stores.

Net retail sales increased to 75.8 billion rubles ($2.6 billion) from 63.1 billion rubles in the year-earlier period, Moscow-based X5 said today in a statement. Same-store sales grew 7 percent in the quarter. The company added 27 outlets in the period, mostly discount stores, raising its total to 1,399.

Sales growth was driven by a powerful like-for-like performance at discounters, Chief Executive Officer Lev Khasis said in the statement. We believe consumer spending will begin to show improvement toward the end of the year.

Russia s economy is poised for the biggest bounce in the world this year, expanding 7 percent, as companies rebuild stocks and resurgent consumer demand boosts output after a record slump in 2009, Bank of America Merrill Lynch said yesterday. X5 plans to spend about 18 billion rubles this year to open as many as 10 superstores, 250 discount outlets and 15 supermarkets, it said Jan. 19.

The retailer today reiterated its capital expenditure plan and sales growth forecast for 2010. Sales growth this year will be comparable to 2009, when growth reached 25 percent, X5 said in January.